University of Southern Mississippi Research Foundation

The University of Southern Mississippi Research Foundation supports and enhances the research mission of The University of Southern Mississippi
by promoting the increase of useful knowledge and encourages the development of intellectual
properties owned by the University.

The USM Research Foundation is a Mississippi non-profit corporation, organized under
the laws of the State of Mississippi and incorporated in 1998 and recognized as tax
exempt under Section 501(c)(3) of the Internal Revenue Code. In accordance with its
Articles of Incorporation, the Research Foundation is administered and operated exclusively
for the benefit of the University.

The business affairs of the corporation are managed by its three- seven member board
of directors who are appointed by the President of The University of Southern Mississippi.
Officers of the board are a president, vice president, and treasurer. In addition
to the voting directors, the USM Vice President for Research and the Executive Assistant
to the President serve as ex-officio non-voting members. The day-to-day operations
are managed by an Executive Director.

The USM Research Foundation has an agreement with the University to manage and promote
its intellectual property and to provide support for industrial contracts to the University.
The Foundation also provides support to the University in negotiating corporate and
private research contracts. The values of new industrial contracts amanged by the
Foundation range from $1.5 million to $2.0 million per year.

The University also has a development agreement with the USM Research Foundation that
allows the Foundation to expedite the process of entering into and executing leases
with private sector companies who wish to lease property in the USM Research and Innovation
Park known as The Garden, located off Classic Drive in Hattiesburg.

Pinion Properties, LLC is a wholly-owned subsidiary of the USM Research Foundation
created in 2005 as a for-profit entity for the investment, acquisition, management,
operation and disposition of property. The Foundation transferred title to its Garden
Park property in Gulfport to Pinion in 2005. Pinion borrowed funds and refurbished
the property into the Southern Miss Gulf Coast Student Service Center and for other
purposes. The property is leased to the University and to other entities. The rent
revenue is sufficient to pay loan cost, building operation and maintenance and yield
a small annual profit for Pinion.